Using known technology, branch banks typically individually determine how much cash is needed to maintain the services that they provide to their customers. As a result of branch banks erring on the “safe side,” branch banks have tended to order substantially more cash than is needed. Such over-ordering puts much more cash in inventory than is needed to maintain the respective businesses. The excessive inventory results in substantial costs that could be avoided.
On the other hand, using prior techniques, branches sometimes order less than they need, and run out of cash. This results in needing an expedited transfer of cash. Such expedited transfers can be many times the cost of routine transfers.
In general, the prior technology is lacking in the coordination and optimization of transfers of cash.